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In-s [12.5K]
3 years ago
7

Company X has 2 million shares of common stock outstanding with a book value of $2 per share. The stock trades for $3 per share.

It also has $2 million in face value of debt that trades at 90% of face value. What is the debt ratio that should be used to calculate WACC
Business
1 answer:
gladu [14]3 years ago
4 0

Answer:

23.08%

Explanation:

The computation of the debt ratio is shown below:

Debt amount

= 2 million × 0.90

= 1.80 million

And,

Equity amount

= 2 million × 3

= 6 million

Now

debt ratio = debt amount  ÷ (amount of debt + amount of equity)

= 1.80 million ÷ ( 6 million + 1.80 million)

= 23.08%

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Tpy6a [65]

Answer:

Source processes

Explanation:

The SCOR model looks at a firm´s supply chain activities in three levels of increasing detail. Level 1 views SCM activities as being structured around five core management processes including <u>Source processes</u> which are processes that procure goods and services to meet planned or actual demand.

Supply chain operations reference (SCOR):  It is a strategic planning tool that helps in identifying, improving and communicating supply chain management decisions within the company. It is a continuous improvement process and establishing a benchmark for the industry. It also works to develop a business process for satisfying customer´s demand. SCOR is based on five management process:

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Source process: This process of supply chain management is defined as steps to procure goods and services to meet the requirement for infrastructural arrangements.

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3 years ago
Ben is planning a ground-breaking ceremony for the company's new headquarters in Charlotte, North Carolina. He has a limited bud
OleMash [197]

Answer and Explanation:

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3 years ago
Three individuals form Skylark Corporation with the following contributions: Cliff, cash of $50,000 for 50 shares; Brad, land wo
erastova [34]

Answer:

C. Ron’s basis in his stock is $27,000

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grigory [225]

Answer:

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To obtain venture capital financing, business founders often have to give up some ownership and control of their business.

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The answer is letter B.

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